UPDATE: Stifel Nicolaus Downgrades KB Home to Hold

Stifel Nicolaus downgrades rating on KB Home

to Hold from Buy as no housing recovery is in sight any time soon. Stifel Nicolaus notes, "KBH reported F4Q11 EPS of $0.18, which included a 20c gain on winding down a mortgage joint venture. ...The quarter was generally fine in our view, which we'll come back to. Our lowered rating is based on reassessing KB's chosen path – one we characterize as determination and dedication to the path of leverage, as opposed to our expectation of some “mea culpa” and strategic adjustments." KBH closed at $7.22 per share on Wednesday.